MORE SUNDAY WORLD, 8-9 (IT’S HARD TO BE BIG IN A HOT WORLD; CANADA BUYS IN ON ICELAND GEOTHERMAL; INDIA WANTS PAID-FOR SUN)

IT’S HARD TO BE BIG IN A HOT WORLD
Climate Bill Success = Treaty Failure?
Andrew C. Revkin, August 7, 2009 (NY Times)

"A predictable impasse is growing over the climate bill that Democratic leaders are trying to push through the Senate. To build sufficient support, it appears that the bill would have to include mechanisms punishing other countries — implicitly large emerging economic powers led by China and India — if they don’t pursue emissions cuts, too… 10 Senate Democrats sent a letter to President Obama… saying they would not support a bill without the confidence that all countries emitting large amounts of greenhouse gases were acting to limit their impact on the shared atmosphere…

"'Climate change is a reality and the world cannot afford inaction...However, we must not engage in a self-defeating effort that displaces greenhouse gas emissions rather than reducing them and displaces U.S. jobs rather than bolstering them.'"

Game theory offers a way to think about the dilemma. (click thru for the paper)

"The impasse reflects a daunting pincers-like situation for Mr. Obama, who has pledged internationally to lead the world toward a new treaty limiting greenhouse gases and pledged to pass aggressive climate legislation at home. The problem is, to get the legislation passed will require compromises aimed at protecting the economies of manufacturing and coal states, and to get a climate treaty negotiated will require measures guaranteeing that rich countries move first to cut emissions.

"On the treaty front, the Senate will surely be seeking measurable, verifiable and substantial steps by the big developing countries. At the same time, China, India and other economic competitors are not likely to be in an agreeable mood at treaty talks in Copenhagen in December if faced with protectionist steps in the United States."

The paper applies game theory to the dilemma. (click thru for the paper)

"The pincers on the president are tightened by another reality devolving from the nature of American democracy. No treaty can take effect here without the president’s gaining the advice and consent of the Senate — a two-thirds vote of approval. It was that situation that essentially guaranteed that the last climate pact signed by the United States, the 1997 Kyoto Protocol, would never be sent to the Senate for ratification by either President Bill Clinton or President George W. Bush.

"Is there a way to for Mr. Obama to move forward on both the domestic and international climate and energy fronts without one effort scuttling the other? … Benjamin LaBolt at the State Department sent this statement… 'During negotiations over the House bill, the President made clear that assistance should be provided to vulnerable families, communities, and businesses to help in the transition to a clean energy economy. He will take that same approach as he works with the Senate to pass comprehensive energy legislation that invests in clean energy incentives that will create millions of jobs. The President also believes that the most effective approach to maintaining a level playing field is to negotiate a new international climate change agreement that ensures that all the major polluters take significant actions to reduce their greenhouse gas emissions.'"


CANADA BUYS IN ON ICELAND GEOTHERMAL
Magma sinks cash into Iceland geothermal producer
Susan Taylor (w/ Frank McGurty), July 23, 2009 (Reuters)

"Canada's Magma Energy Corp…will boost its geothermal production power with an investment of up to $40 million in Iceland's HS Orka, a producer poised for expansion…

"Magma, which generated C$100 million ($91.7 million) in its IPO July 7…will buy the minority interest in privately-held HS Orka from Geysir Green Energy…Magma will first buy an 8.62 percent stake for about $20 million, payable at deal closing, and a 2.16 percent holding for about $5 million, due by March 31, 2010. It has an option to acquire another 5 percent share by investing $15 million into HS Orka."

Iceland is rich with geothermal assets. (click to enlarge)

"The geothermal sector is attracting increasing interest…There are 9,000 MW worldwide…[but] utilities, especially in North American, know that a cap and trade system is coming...[an example was] a bid by TransAlta Corp, Canada's biggest publicly traded electricity producer, for Canadian Hydro Developers…

"Iceland's largest privately owned energy company, HS Orka has installed geothermal power capacity of 175 MW of electricity from its Svartsengi and Reykjanes power plants. It plans to expand production to 425 MW by 2015…The company also generates 150 MW of thermal energy for district heating…Much of its geothermal power is sold in U.S. dollar contracts to a large aluminum smelter…with expansion capacity earmarked for a new aluminum smelter under construction."

Iceland gets more than a quarter of its power from geothermal and uses it in every sector of its economic life. (click to enlarge)

"Magma…is currently a small producer of geothermal energy, with one plant in Soda Lake, Nevada. It has four advanced-stage exploration properties in the western United States, Chile, Argentina and Peru…[It] plans to use the C$100 million from its IPO to double capacity at Soda Lake from 8 MW to 16 MW, advance its exploration properties and make acquisitions…

"Geothermal power comes from hot water and steam produced deep below the earth's surface. They are piped up to the surface and used to drive turbines that generate electricity…"


INDIA WANTS PAID-FOR SUN
India demands West pay for bold solar energy plans; The plan is to generate 20 gigawatts by 2020 - Shift in government policy boosted wind energy production
Maseeh Rahman, August 6, 2009 (The Hindu)

"India has decided to push ahead with an ambitious plan to generate clean electricity through the power of the sun - and, after a meeting chaired by the Prime Minister, Manmohan Singh, it wants rich nations to pay the bill.

"Although the country has virtually no solar power today, the plan is to generate 20 gigawatts (GW) from sunlight by 2020. According to the International Energy Agency, global solar capacity is predicted to be 27GW by then — meaning that India expects to be producing 75 per cent of this within 10 years…"

India is making ambitious plans...(click to enlarge)

"About 400 million Indians have no electricity at all, and harnessing the country’s abundant solar power could help spark growth…end the power cuts that plague the nation…[and] assuage international criticism that India [heavily reliant on coal] is not doing enough to control its carbon emissions…

"The idea provoked intense and prolonged discussions at a meeting of the national climate change council in New Delhi…Initial plans had anticipated that a government subsidy of about $20bn, and falling production costs, would enable a long-term 2040 target of 200GW of solar power…[but] experts pointed out that a large government subsidy would contradict the Indian government’s stated position in the global warming treaty negotiations…India, along with China and others, has demanded that the costs of clean technologies should be borne by developed nations, who have grown rich through their heavy use of fossil fuels."

...but they decided somebody else needs to pay for their ambitious plans. (click to enlarge)

"Under the revised plan, India’s solar mission will seek to achieve its targets by demanding technological and financial support from the developed nations…The move suggests that New Delhi could use its solar energy plan as a bargaining chip at the forthcoming climate change summit in Copenhagen.

"If rich nations do fund the solar plan, the aim of both sides — economic growth for developing countries but with low-carbon emissions — will have been met…[but] the plan’s optimistic cost projections were debunked…leaving it unclear how much money the 2020 target would need…"